A Global Marketing Plan for Vectair Systems' SensaMist S100 in Vietnam

This report details a comprehensive global marketing plan for Vectair Systems, focusing on the introduction of their SensaMist S100 air freshener into the Vietnamese market. The plan begins with an introduction to Vectair Systems and their product, followed by the business objectives, which include capturing market share and establishing brand awareness. Country screening justifies the selection of Vietnam as a target market due to its emerging economy and growth potential. The report then outlines a segmentation-targeting-positioning strategy, identifying demographic, psychographic, behavioral, and geographic segments, with a focus on Hanoi residents. Marketing objectives are defined, including sales targets and brand awareness goals. The report explores various entry modes, concluding that direct exporting is the most suitable strategy. A detailed global marketing mix is presented, covering product features, competitive pricing, strategic placement, and promotional activities. The report also includes a marketing budget and margin analysis, providing a financial overview of the marketing plan. Overall, the report provides a strategic roadmap for Vectair Systems to successfully launch SensaMist S100 in Vietnam.

Running head: GLOBAL MARKETING
Global Marketing: Vectair Systems
Name of the Student:
Name of the University:
Author note:

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Introduction
Vectair Systems is a renowned technological innovator, producer and supplier of aircare
and hygiene goods in numerous sectors across the world. For more than 30 years, Vectair
Systems have been supplying various aircare, sanitary and scent products to more than 130
nations. The company mainly focuses on the aircare products, such as, odour control, skin care,
hand wash, sanitary disposal, surface care, infant care and hygiene products for external
spaces (Vectair Systems 2020). It has prominent presence in the Europe and North America,
and with a new air freshener product, named SensaMist S100, Vectair Systems aims to enter
the market of Vietnam. This report will present a marketing plan for Vectair to introduce the new
product in Vietnam’s market through a comprehensive discussion on the business objectives,
country selection, segmentation, targeting and positioning in Vietnam, marketing objectives,
choice of entry mode, global marketing mix, and global marketing budget.
Business objectives
The business objectives of Vectair Systems regarding the new product SensaMist S100 are:
 To capture a substantial share of the market for air freshener in a new emerging
economy of Vietnam
 To create brand awareness in the aircare and hygiene product market in Vietnam
 To provide best quality aircare solution to the target market
 To achieve minimum of £50,000 gross sales revenue in the first year along with £30,000
costed promotional budget and projection of surplus or deficit for the marketing plan at
the end of first year in Vietnam
 To operate responsibly with limited resources in an economy, which is economically
lagging behind the first world countries in which Vectair operates.
Country screening
There are six countries in which Vectair has not yet established their market, and those
are Canada, Brazil, Nigeria, Turkey, Vietnam and Russia. This framework is useful for having a
systematic approach for multi-business organizations for prioritizing the investments among all
business units. As per the ease of doing business index, Vietnam holds the rank of 70 (World
Bank 2020). Vectair has presence in North America and in the European countries. However, it
does not have any presence in the East and Southeast Asia, and hence, to create a brand
awareness in the new market, Vietnam has been chosen. It is an emerging economy with a

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positive growth outlook in the medium term. Poverty has declined sharply in Vietnam from 70%
to less than 6% and there is 2.5 times increase in GDP per capita indicating increase in the
purchasing power of the people. With a rapid social and demographic change in the nation, and
improvement in the basic services and more imported goods, and spurring growth of
multinational businesses, there is a new market for hygiene products like SensaMist S100.
Hence, Vietnam is chosen by Vectair Systems for business expansion.
Segmentation-Targeting-Positioning
Segmentation-Targeting-Positioning is an essential strategy for marketing. To offer the
highest value to the customers, it is important for the company to understand the specific
features and demand of the target market by identifying the relevant segments, targeting the
correct segments and positioning the product or service in a way so that it reaches to maximum
audience and fulfills the marketing objectives (DeSarbo, Blanchard and Atalay 2017).
Figure 1: Segmentation-Targeting-Positioning
(Source: DeSarbo, Blanchard and Atalay 2017)
Segmentation for Vectair Systems:
Segments Criteria
Demographic  Age: 20 years and above
 Gender: male and female both
 Income: 35,00,000 VND per month (approximately) and above
 Relationship status: Single, married, family,
widow/widower/divorcee etc.

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 Work status: part time, full time, student
Psychographic  Preference for hygiene in daily life
 Values healthy lifestyle
 Preference for clean and fresh smelling environment
 Interested in trying out new fragrances
Behavioral  Spends regularly on hygiene care products
 Purchases fragrances for living environment at home, office and
cars.
 Regular user of air freshener at home, offices, toilets, and cars
 Open to try new brands
Geographic  People staying in Hanoi (for the short term)
 People all over Vietnam (in the long term)
Based on the segments above, Vectair will target the adult customers residing in Hanoi. The
main product feature, that is, the scent diffuser is manufactured to provide a very hygienic and
fresh fragrance suitable for all types of environment, such as, home, office, gym, casinos, retail
spaces, hospitality venues, hotels and cars, will be highlighted to the target market. Hence,
people of all ages and gender, with all income level and work status, single, married or with a
family are the target group of Vectair for SensaMist S100. Furthermore, for the product launch, it
will only be available to the residents of Hanoi and for people who prefers and spends on
aircare solutions for having a refreshing and hygienic air in their homes, offices, cars etc.
Positioning strategy will be chosen such that a certain image of the product would be
created among the target market to suit the needs and demands of the consumers. Hence, by
positioning, companies create the image so that the consumers perceive the product or service
in a certain way (Iyer et al. 2019). In this case, Vectair Systems positions the scent diffuser as a
device that would create a fresh and hygienic air and environment in the living space at home,
offices, cars, hospitality venues, restaurants etc. Hence, the product is positioned as one that
would give the fresh, relaxing and comforting environment and improve the feel good factor of
the users.

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Marketing objectives
The marketing objectives of Vectair Systems in Vietnam’s market are:
 To achieve 5% market share in the first year and 10% by second year
 To achieve minimum £50,000 gross sales revenue at the end of first year
 To create brand awareness in the new market of Vietnam
 To increase the lead quality and create brand loyal customer base in Hanoi in the first
year of market entry
 To increase positive product reviews
 To create a wider customer base across the country through digital marketing
Entry mode selection
There are various methods of entry modes in a foreign market. As stated by Laufs,
Bembom and Schwens (2016), some most commonly used entry modes are direct exporting,
franchising, licensing, joint venture, merger and acquisition, Greenfield investment, turnkey
projects, FDI, and strategic acquisitions. Direct exporting allows the company to send the goods
directly to other countries either through own sales force or through other retailers by supplying
the products to them (Hollender, Zapkau and Schwens 2017). Although it is a fastest mode of
entry, and the goodwill, patents and copyrights are protected, yet, for the offline products, this
would be a high cost strategy due to high set up cost in a new market.
Franchising and licensing are the methods where other local business owners are
authorized to sell the products under the brand name of the parent company. While the license
holders or franchisees assume the risks, costs of business set up and losses, the revenues and
profits are also shared by them (Qi et al. 2020). Incompetency of the franchisees and licensing
partners can hamper the brand name and goodwill of the company while gaining an advantage
over the market is easier in this method.
Joint ventures enable a foreign company to enter a new market by collaborating with a
local company, in which they have access to greater amount of resources and expertise and
knowledge. Both the rewards and risks are shared in this method. The investments, profits,
losses and costs are shared at predetermined ratio (Chang 2019). While there is less political
risk in joint venture due to knowledge about local market and business environment, business
hamper due to cultural clashes is one of the most common disadvantages of joint venture.

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Under strategic acquisition, a multinational company acquires a controlling interest in a
foreign company in the overseas market and the company can place their members in the
management board of the newly acquired company. However, cultural clashes are a common
problem in this mode of entry (Shen, Puig and Paul 2017).
FDI is the substantial direct investment made by a company in the overseas market. It
includes Greenfield investments, mergers and acquisitions and sometimes turnkey projects.
This is very common when companies want to leverage the cheap labor of another country to
reduce their cost of operation. However, in case of business failure, the company has to bear
the loss and that is a big risk. Furthermore, due to changes in the exchange rates, the rate of
return would fluctuate and that would affect the profit of the investor company (Hollender,
Zapkau and Schwens 2017).
Given the context, Vectair will launch only one product from its product range in
Vietnam’s market and hence, it is not feasible to set up its entire business unit in Vietnam. In
that case, the set up cost would be too high and in case of failure, the amount of loss would be
higher. Strategic alliance and FDI are also not feasible for the above mentioned reason.
Therefore, to launch a single product in a cost effective manner, Vectair should opt for direct
exporting and go for partnerships with the retail distributors, to shelf their scent diffuser, that is,
SensaMist S100. This way, the amount of risk would be less as there would be no separate
franchisee store or licensing partner store and involved set up cost, or large amount of direct
investment to set up business unit, or no cultural clashes that arise in case of strategic alliance
or joint ventures. However, any of these market entry strategies could have been suitable if
Vectair entered the market with its entire business or with multiple product ranges. Hence, as it
is entering with only SensaMist S100, hence, the profitable strategy for the company would be
to directly export the product to the retailers of Vietnam and once there is a substantial market
and brand awareness for Vectair, then it could enter Vietnam’s market with a larger investment.
Detailed extended global marketing mix
Marketing mix refers to the combination of the factors important for marketing of a
product. The 4Ps of marketing mix are Product, Price, Place and Promotion. In global marketing
mix, these four elements are designed such that the company can have its presence in a rapidly
increasing integrated and interdependent global market. Thus, for the multinational companies,
that enter the new markets with their products and service, the marketing mix is planned in a

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manner that incorporate different international aspects along with the regional socio-cultural and
economic aspects (Steenkamp 2017).
The global marketing mix for Vectair Systems for entering Vietnam with SensaMist S100
is as follows:
Product: SensaMist S100 is a new scent diffuser device meant to purify the air with a
refreshing and hygienic fragrance, which is gentle for new born babies also. The product gives a
coverage of up to 300 m3. The product is suitable for various spaces, such as, homes,
hospitality venues, gyms, hotels, retail spaces, casinos, cars and many others. The fragrance
will last according to the location and space size. The product has advanced atomizer
technology for creating fine mist of the customers’ chosen fragrance and diffusing into the
environment. The operation of the device is also silent. The product not only gives fresh air, but
also gives hygienic ambience that helps to mitigate the external pollution effect on the users
(vectairsystems.com 2020).
Price: Vectair will provide a competitive pricing in Vietnam. The product will be exported
directly from the UK to Hanoi and hence, the price will be slightly higher than the domestic
brands. However, still the price would be affordable to the retail as well as commercial
consumers. The average price for local air diffusers vary from 850,000 VND to 3,500,000 VND
and SensaMist S100 will be available within 1,500,000 VND and 2,000,000 VND. Vectair will
follow the cost leadership strategy to capture the new market. As it will not have to invest larger
capital to set up stores or to provide franchises, hence, it will utilize the capital for cost
leadership strategy for the initial venture and to have a sustainable profit margin. The retailers
will also be able to give discounts for more than 1 unit purchase.
Promotion: Vectair Systems will spend a large amount for promotions. As it is a new
brand in the aircare solution market in Vietnam, hence, it must create a brand awareness first
for spreading out in the market. It will opt for both the traditional and digital marketing
techniques for reaching out to the target market. For example, it will put up printed
advertisements in newspapers, magazines and fliers and digital advertisements will be aired on
television channels and radio channels. Furthermore, social media sites will be used for digital
marketing as that’s is highly time and cost effective and is beneficial for reaching out to the
maximum number of customers. Moreover, the retail stores can give their own offers on
SensaMist S100, such as buy 1 get 1 offer, free gifts or certain discounts on the new products
etc. to draw the attention of the customers.

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Place: According to the market entry plan, as Vectair Systems will directly export the
SensaMist S100 to the retail department stores and various convenience stores, such as, Big C,
Intimex, Fivimart, Citimart, Co.opmart, Labella Green Fashion, Lotte Mart, the Crescent,
diamond Plaza, Parkson Plaza, Nowzone, G7 Mart, Shop & Go etc., hence, customers can
purchase the product from these retail stores. The product will be shelved by these retail
partners for customers’ access. Vectair will also provide the product through online retailers in
Vietnam for convenient shopping for the tech-savvy customers.
Through these marketing mix, Vectair will be able to reach out to the target market
across Hanoi in the first year of its presence in Vietnam. The brand value of the company in the
UK will be utilized in their promotional messages to create customer confidence. Due to lower
investment cost, Vectair is expected to invest a substantial amount in marketing activities and
earn a profit margin in the first year of launching SensaMist S100.
Global Marketing Budget
Vectair Systems has the objective of earning minimum £50,000 from the first year gross
sales and the costed promotional budget of £30,000 has been allocated for the marketing.
Hence, it is expected that Vectair Systems will earn profit from its sales. The budget will be
distributed among the marketing activities and channels like print advertisements, and digital
advertisements, and in social media. The budget is distributed among four different types of
marketing channels, namely, print advertisements, digital advertisements, social media and
direct promotions. £10000 will be used for print advertisements that is, for newspaper,
magazines, billboards, hoardings, pamphlets and fliers and expected gross sales revenue is
£7500. £15000 will be used for digital advertisements, such as, ads in television, radio and
YouTube. It is expected to bring a higher gross sales revenue, £27500, with a margin of
£12500. In the social media marketing, £4000 will be invested and £1000 will be invested in the
direct marketing. Apart from the print media, positive margin is expected in all other channels.
Thus, £50000 gross sales revenue is expected to be achieved after one year of market entry as
well as from the marketing activities of Vectair Systems for SensaMist S100 in the Vietnam
market.

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References
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joint ventures. Journal of International Business Studies, 50(6), pp.998-1020.
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methodology for simultaneous segmentation, targeting, and positioning (STP analysis) for
marketing research. In Review of marketing research (pp. 95-123). Routledge.
Hollender, L., Zapkau, F.B. and Schwens, C., 2017. SME foreign market entry mode choice and
foreign venture performance: The moderating effect of international experience and product
adaptation. International Business Review, 26(2), pp.250-263.
Iyer, P., Davari, A., Zolfagharian, M. and Paswan, A., 2019. Market orientation, positioning
strategy and brand performance. Industrial Marketing Management, 81, pp.16-29.
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entry mode choice. International Marketing Review.
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as a foreign market entry mode. Industrial Marketing Management.
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research agenda. The International Trade Journal, 31(5), pp.429-456.
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Available at: https://www.statista.com/outlook/251/127/consumer-electronics/vietnam#market-
globalRevenue [Accessed 8 Mar. 2020].

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Statista.com, 2020. Fragrances - Vietnam | Statista Market Forecast. [online] Statista. Available
at: https://www.statista.com/outlook/70050000/127/fragrances/vietnam#market-globalRevenue
[Accessed 8 Mar. 2020].
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Appendix I)
Secondary Market Research
Figure 2: Revenue of Consumer Electronics market in Vietnam with a forecast up
to 2024
(Source: Statista 2020)
It also includes fragrance diffuser device market.
Figure 3: Fragrance market revenue with a forecast up to 2023 in Vietnam

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(Source: Statista.com 2020)